Vietnam producers see rising sales, dwindling profits

Vietnam’s seafood exporters are seeing a worrying trend: higher revenues offset by higher costs. The Vietnam Ministry of Agriculture and Rural Development released figures from the first quarter of 2011 that showed export revenues were up by 22 percent to $1.1 billion (€687 million), but profit was hard to come by, the Saigon Daily reported.

Nam Viet JSC (NAVICO) Director Nguyen Duy Nhut said while his company posted export revenues of VND 300 billion ($14.3 million/€9.8 million) in the past three months, it didn’t turn a profit as raw material, production costs and loan interest rates climbed.

Go Dang Seafood Director Nguyen Van Dao also saw sales rise in the first quarter — revenues are up 15 percent — but recorded a slim profit, the Saigon Daily reported.

Minh Hai Seafood JS Co. saw the same trend — shrimp exports are up 40 percent in the first three months of the year — but profits were slim.